JPMorgan analyst Ilan Benhamou stated that as tariff policies gradually become clearer, some key risks in the market have reduced. Therefore, he believes that the recent popular "sell high" strategy should be paused.
In a report sent to clients on Monday, Benhamou pointed out that the market's biggest concern was uncertainty, and now that the economic risks brought by Trump have eased, short sellers may need to change their mindset:
The market's current concern about tariffs is not whether they will be implemented, but the potential chaos the policy might bring.
US Three Major Indices Continue to Rebound
Yesterday (25th), the main US stock market indices closed.
- S&P 500 Index rose 9.08 points (0.16%), closing at 5,776.65 points
- Dow Jones Industrial Average slightly increased 4.18 points, closing at 42,587.50 points
- Nasdaq Composite Index rose 83.26 points (0.46%), closing at 18,271.86 points
- The only declining index was the Philadelphia Semiconductor Index, dropping 32.89 points (0.7%), closing at 4,661.34 points
The reason for the semiconductor index's decline may be due to Alibaba co-founder Jack Ma's warning about potential bubbles in AI capital expenditure and data center construction, which intensified market doubts about the sustainability of AI demand, causing AI concept stocks to soften. Nvidia fell 0.59%, TSMC ADR slightly dropped 0.14%...
Be Cautious This Week of PCE and Next Week's Trump Reciprocal Tariffs
In terms of short-term factors affecting the overall market, investors should pay attention to the US February Core PCE Price Index to be released this Friday, which is one of the inflation indicators the Federal Reserve focuses on. If the data unexpectedly rises, it may further delay market expectations for interest rate cuts.
Additionally, the reciprocal tariffs Trump will announce on 4/2 - whether "many countries" will be granted exemptions and whether the tax intensity will be slightly relaxed - are market focal points. eToro US Investment Analyst Bret Kenwell warns that until tariffs and macroeconomic conditions become clearer, market sentiment and people's confidence will remain fragile.
In the cryptocurrency market, Bitcoin's price briefly rose to over $88,000 this morning, with the price around $87,423 before this report.
Further Reading: Bitcoin at $88,000 Oscillating - Analysts: If Breaking $90,000 Resistance, Potential to Reach New Highs, BTC April Historical Returns Promising
